Road Accident Fund Act, 1996 (Act No. 56 of 1996)

Board Notice 120

18 September 2020

GG 43726

Road Accident Fund

The Road Accident Fund hereby, in accordance with section 17(4A)(a) of the Road Accident Fund Act, No. 56 of 1996, as amended, adjusts and makes known that the amounts referred to in subsection 17(4)(c) are hereby adjusted to R295 322, with effect from 31 July 2020, to counter the effects of CPI inflation.

Note: Limitations due to COVID-19

The May 2020 CPI index was not published. The last published CPI index is for April 2020. StatsSA advises that the April CPI number is based on a smaller sample since the COVID-19 lockdown dramatically restricted the goods and services available for purchase by consumers. It was also not possible for the CPI data collectors to visit stores. As such, the calculation of the adjustment is based on the March 2020 index.

The CPI index based on the new “basket and weights” was used to calculate this adjustment, effective from 31 July 2020 (with base year December 2016 = 100). The rebased CPI index for May 2008 was 62.63. The CPI index for March 2020 was 115.6. This adjustment was calculated by multiplying the R 160 000 limit by 115.6/62.63.